BTC And ETH Community Clash Over Supply Issuance Of Both Cryptos
Enthusiasts of Bitcoin and Ethereum, the two largest digital currencies, have always been at loggerheads. As the new year begins, an ongoing debate has emerged.
Users are comparing the capped 21 million BTC tokens to the deflationary supply of ETH. Also, there is a disagreement over which of the two cryptocurrencies can be considered sound money.
BTC And ETH Community Debate Over Which Crypto Is Sound Money
Recently on Twitter, a user, @ultrasoundmoney, compared BTC and ETH’s supply issuance. The Ethereum supporter argued that if BTC with a capped supply is considered sound money, ETH with a decreasing supply must be regarded as “ultrasound” money.
However, BTC supporters were quick to refute the statement. They argued that the credibility of the monetary policy determines its soundness.
In addition, a renowned Bitcoin supporter, Dan Held, joined the debate saying that a currency constantly changing policies has lesser credibility than one with zero change of policies.
“Trust in humans is built over time, not just through code. From your perspective, if we create a new cryptocurrency with more deflationary features, the currency should be considered more “sound,” Held added.
Another Bitcoin proponent raised doubts about the reliability of ETH’s monetary policy, pointing out that it has undergone “at least 11 changes” since its inception seven years ago. In contrast, the monetary policy of Bitcoin has remained unchanged.
In August 2021, ETH became deflationary following the implementation of the Ethereum Improvement Proposal 1559 (EIP-1559) upgrade. The upgrade included a burning mechanism that burns a part of the transaction charge, thereby decreasing ETH’s circulating supply.
The Birth Of Bitcoin Cash
In addition, Alex Gladstein claimed that “admins” can modify the monetary policy of Ethereum. However, Anthony Sassano, an Ethereum educator, noted that many node operators operated by Ethereum community members must grant their approvals before such changes occur.
Furthermore, Maitri network founder, Leo Glisic, argued that Ethereum is currently sound money. However, Glisic predicts that Bitcoin will reach its cap in 2140.
Meanwhile, the original code for the Bitcoin network has faced similar monetary tweaking demands just like Ethereum. The most notable change came in 2017.
At the time, the Bitcoin community demanded that developers increase the block size of BTC so it could process more transactions per block. The aim was to increase the scalability of the network.
Most members of the Bitcoin community opposed altering the initial code written by Satoshi Nakamoto. Nevertheless, a hard fork on the BTC network led to the formation of Bitcoin Cash (BCH).
Notably, the BCH’s block size is 8 MB, larger than that of BTC, which is 1 MB. Unfortunately, BCH has seen minimal on-chain development after its launch in 2017. The cryptocurrency’s price has fallen by about 97% from its peak value.
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